What is the Shortest Variable Life Limit for Variable Life Insurance?

Posted in Life Insurance , Variable Life Insurance

March 20th, 2009

The law limits the flexibility of variable life insurance. If you are seeking a level of insurance that will last throughout your lifetime, gain cash value, possibly earn dividends and is flexible for various life stages then a variable life insurance policy may be right for you. It’s important to realize that with this type of policy, earnings are not guaranteed, and you may even discover that the cash value of your variable life insurance policy fluctuates with the existing market conditions. Because a portion of the premiums are allotted for investment opportunities, the premiums and risk factor of variable life insurance are the largest compared to other types of life insurance offerings.

Because a portion of the premiums is invested and a portion of the policy goes towards death benefits, the shortest variable life limit for a variable life insurance policy is a minimum of five years. Without at least five years time there would be very little cash value that has accrued through the monthly premium funding payments.

The shortest variable life limit for variable life insurance should really be calculated to analyze the cost benefits and compared to the overall risks associated with variable life life insurance. If you are considering variable life insurance, you need to analyze whether the payments, risks and rewards will fit into your financial strategy. Examine the financial needs of your family and speak with a qualified life insurance agent to determine what is right for you.